Xstrata's £46bn merger with Glencore claimed the scalp of Trevor Reid,
Xstrata’s veteran chief financial officer, as he resigned from his post
after a decade in the role.

Mr Reid had been set to hold the same position at the combined group, but is stepping down after shareholders voted against miner Xstrata’s controversial “golden handcuffs” plan for its management.

Steven Kalmin, finance chief at commodity giant Glencore, will now take the role. He had been due to be Mr Reid’s deputy in the Glencore Xstrata group.

Xstrata shareholders’ blocking of plans to pay £140m in “retention” payments to 70 of its top staff is understood to have played a part in Mr Reid’s decision, as he had backed the move.

Had the retention plan been accepted, Mr Reid would have been due to receive £10.8m in shares over two years if he hit targets, and possibly a further £3.3m under Glencore’s long-term incentive plan.

Mr Reid is still expected to receive a £5.45m payment for his contract being terminated, as it follows a change of control at the company. He also has share options, but appears unlikely to exercise them as Xstrata’s shares are trading below the strike price.

There have been concerns in the market that the failure of the pay vote risks an exodus of talent from Xstrata’s side, which will not be alleviated by Mr Reid’s departure.

However, Xstrata’s shares moved little, pointing to a lack of surprise in the market at Mr Reid’s decision. Glencore is understood to be willing to do what it necessary to retain key talent from both sides.

Mr Reid will now remain in his role until the merger completes then will act as a consultant for up to six months to support integration of the two companies’ finance divisions, for which Xstrata would not disclose his fee.

Praising his colleague, Mr Davis said: “Eleven years ago, I persuaded Trevor to leave a successful banking career to embark upon the transformation of a struggling company in a precarious financial position with limited options.

“Trevor’s decision to step down following completion of the merger with Glencore marks the end of an extraordinarily successful decade as CFO.”

It was on Tuesday unclear what step Mr Reid will take next, with speculation that he could join with Mr Davis on a project. The major miners are going through a period of change, as the sector’s biggest, BHP Billiton, talks about a successor to chief executive Marius Kloppers, while Anglo American is also looking for a new chief executive to follow Cynthia Carroll.

Thras Moraitis, Xstrata's head of strategy, will also quit, The Times reported on Tuesday night, adding that several other top executives could leave as roles are carved up post the merger.